Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I need my answer from question 3 to be confirmed and question 4 to be answered. I am only providing question 3 as it is

I need my answer from question 3 to be confirmed and question 4 to be answered. I am only providing question 3 as it is necessary context.

The table below shows the average sales (as number sold per day) at grocery store of Product A based on its prices and the prices of a competitors Product B, where the two competing products and their respective prices are displayed next to each other, S=S(A,B).

A = $2.75

A = $3.00

A = $3.25

A = $3.50

A = $3.75

B = $2.90

107

93

73

48

15

B = $3.15

156

142

122

97

64

B = $3.40

205

191

171

146

113

B = $3.65

254

240

220

195

162

B = $3.90

303

289

269

244

211

Problem 3 question

- In order to estimate the average sales of Product A when the price of Product A is $2.75 and the price of Product B is $3.90, which variable should be held constant? Why?

Problem 3 answer

- To estimate the average of sales we need to treat the price of A as a constant and observe that production is affected by which other variables. Here production is also affected by price of B so price of A should be held constant.

///////////////////////////////////////////////////////////////////

Problem 4 question (the question I need to be answered)

- Will the cross-section needed to estimate the average sales in problem 3) be represented by a row or column? Why?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Environmental Health And Safety Audits

Authors: Lawrence B. Cahill, Raymond W. Kane

9th Edition

1605907081, 9781605907086

More Books

Students also viewed these Accounting questions